TaxTMI 
TaxTMI 
2025 (4) TMI 2080
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.....s. 144C(13) r.w.s. 144B of the Income Tax Act, 1961 ("the Act"), as per the direction of Learned Dispute Resolution Panel ("Ld. DRP") dated 24.01.2022 for the A.Y. 2017-18. 2. The assessee has raised the following grounds of appeal : "1. The Learned (Ld) Assessing Officer (AO)/Ld Dispute Resolution Panel (DRP) are erroneous in law and on the facts of the case. 2. The Ld. DRP/AO is not justified in making an adjustment u/s 92CA of Rs. 1,32,90,250/- 3. The Ld. DRP/Ld. AO erred in disregarding the transfer pricing study report and the information, documents and the clarifications provided by the Assessee to evidence the arm's length nature of technical and stewardship services i.e., management services (intra....
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....410/- on account of Technical Services and Rs. 1,07,77,840/- on account of Stewardship Services. Accordingly, the Ld. AO passed draft assessment order on 30.03.2021. Aggrieved with the draft assessment order passed by the Ld. AO, the assessee preferred objections before the Ld. DRP. In pursuance to the directions of Ld. DRP dated 28.12.2021, the Ld. AO finalized the assessment on 24.01.2022 by making total addition of Rs. 1,32,90,250/- on account of upward adjustment of ALP. 4. Aggrieved with the final assessment order of Ld. AO, the assessee is in appeal before us. 5. Before us, the Learned Authorized Representative ("Ld. AR") submitted that the solitary issue in the grounds of appeal is on account of adjustment made by the Ld. AO/TP....
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.... provision of services and submitted that the documents also demonstrate that the actual services have been rendered to the assessee. The ld.AR further argued that the Ld. AO/TPO should not question the commercial expediency of intra group arrangement where services were received, and payments were made accordingly. In support of their submission, the ld.AR relied on the following decisions : 1) AVO Carbon India (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle -10(1) 135 taxmann.com 328 (Chennai - Trib.) 2) Renishaw Metrology Systems Ltd. v. DCIT 139 taxmann.com 287 (Pune-Trib.) 3) Aurobindo Pharma Ltd. v. Deputy Commissioner of Income-tax. 143 taxmann.com 143 (Hyderabad-Trib.) 4) Henkel Chembond....
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....ubmitted that the only relevant email for F.Y. 2016-17 dt.20.03.2017 placed at page No.699 of Paper Book, does not contain any concrete reference to rendering of services. Further, the visit of persons to India are for very short duration that ranges from 4 to 14 days, suggests oversight by the holding company and not actual service delivery. The Ld.DR also pointed out that no cost allocation working, benefit analysis or evidence of services output was filed, only filing of copy of power point presentation and vague summary do not constitute proof of services. 8. We have heard the rival contentions and also gone through the record in light of submissions made by either side. The primary issue in dispute is the adjustment made by the Ld.A....
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.... provide any substantial reference to specific services rendered or their economic benefit to the assessee. 10. We have also examined the details of personnel, who visited in India, placed at page No.644 of the paper book which is to the following effect : 11. On perusal of the above, we found that the persons visited India are Finance Controller - International, Production Director, Marketing Director, System Administrator and Information Technology Director. These individuals primarily hold managerial and supervisory roles, with no engineers, technical staff, or project specific professionals identified as having visited India. Further, the duration of the visit was also very short and no documentation of meetings, training or deriv....
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....ecords, or documented deliverables weakens the assessee's case. While intra-group services cannot be outrightly disregarded, a mere contractual arrangement without any significant supporting evidences is insufficient to establish the rendering of services. The failure to provide contemporaneous and verifiable evidence justifies the approach adopted by the Ld. AO/TPO in determining the ALP of these services as Nil. 13. In view of the above discussion, we find no infirmity in the adjustment made by the Ld. AO/TPO. The appeal of the assessee is devoid of merit and is accordingly dismissed. 14. In the result, the appeal of the assessee is dismissed. 9th अप्रैल, 2025 को खुë....